XML 50 R32.htm IDEA: XBRL DOCUMENT v3.25.1
USE OF SPECIAL PURPOSE ENTITIES AND VARIABLE INTEREST ENTITIES (Tables)
 12 Months Ended
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Condensed Consolidated Balance Sheets
The carrying values of the Company's total assets and liabilities related to the 2021-FL1 CLO and LMF 2023-1 Financing as of December 31, 2024 and December 31, 2023 included the following VIE assets and liabilities:

ASSETSDecember 31, 2024December 31, 2023
Cash, cash equivalents and restricted cash$2,391,042 $270,217 
Accrued interest receivable5,861,355 8,588,805 
Investment related receivable— — 
Loans held for investment1,049,886,009 1,375,277,312 
Total Assets$1,058,138,406 $1,384,136,334 
LIABILITIES
Accrued interest payable$2,611,416 $3,996,538 
Collateralized loan obligations(1)
828,390,189 1,146,210,752 
Total Liabilities$831,001,605 $1,150,207,290 
Equity227,136,801 233,929,044 
Total liabilities and equity$1,058,138,406 $1,384,136,334 
(1)     The stated maturity of the collateral loan obligations per the terms of the underlying collateralized loan obligation agreement is June 14, 2039 for the 2021-FL1 CLO and the stated maturity of the secured financing per the terms of the underlying indenture is July 20, 2032.
Schedule of Loan and Borrowing Characteristics
The following tables present certain loan and borrowing characteristics of 2021-FL1 CLO and LMF 2023-1 Financing as of December 31, 2024 and December 31, 2023:

As of December 31, 2024
Collateralized Loan ObligationsCountPrincipal Value
Carrying Value(1)
Wtd. Avg. Coupon(2)
Collateral (loan investments)651,065,563,646 1,049,886,009 8.08 %
Financings provided2830,698,696 828,390,189 6.66 %
 
As of December 31, 2023
Collateralized Loan ObligationsCountPrincipal Value
Carrying Value(1)
Wtd. Avg. Coupon(2)
Collateral (loan investments)871,388,495,984 1,375,277,312 8.91 %
Financings provided21,151,450,000 1,146,210,752 7.35 %

(1)     The carrying value of the collateral is net of unaccreted purchase discounts of $3,577,206 and $7,159,664 and allowance for credit loss of $11,320,220 and $6,059,006 as of December 31, 2024 and December 31, 2023, respectively. The carrying value for 2021-FL1 CLO is net of debt issuance costs of $1,911,547 for December 31, 2023, and the carrying value for LMF 2023-1 Financing is net of debt issuance costs of $2,308,507 and $3,327,701 for December 31, 2024 and December 31, 2023, respectively.
(2)    Weighted average coupon for loan investments assumes applicable 30-day term SOFR of 4.51% and 5.33% as of December 31, 2024 and December 31, 2023, respectively, inclusive of weighted average interest rate floor of 0.63% and 0.38%, and spreads of 3.53% and 3.54%, respectively. As of December 31, 2024 and December 31, 2023, 100.0% of the investments by total exposure earned a floating rate indexed to 30-day term SOFR. Weighted average coupon for the financings assumes applicable 30-day term SOFR of 4.40% and 5.36% as of December 31, 2024 and December 31, 2023, respectively and spreads of 2.26% and 1.99% for December 31, 2024 and December 31, 2023, respectively.
Schedule of Condensed Consolidated Statements of Operations
The statement of operations related to the 2021-FL1 CLO and LMF 2023-1 Financing at December 31, 2024 and December 31, 2023 include the following income and expense items:

Statements of OperationsDecember 31, 2024December 31, 2023
Interest income$112,323,619 $105,008,175 
Interest expense77,002,847 71,041,861 
Net interest income$35,320,772 $33,966,314 
Less:
Provision for credit losses$5,261,214 $2,745,791 
General and administrative fees912,755 755,745 
Net income$29,146,803 $30,464,778